Moody’s upgrades MHP rating to B3/Stable

Moody’s Investors Service upgraded the corporate
family ratings of MHP (MHPSA) to B3 with a stable outlook, the agency reported
on Dec. 27. The rating is one notch above Ukraine’s sovereign. The agency noted
that MHP’s business profile and financial metrics are strong for a B3 rating,
but the company is exposed to an overall risky environment in Ukraine, where
its key assets are located. On the other hand, the company’s strong export
revenue partially offsets these risks.

Andriy Perederey: We agree with Moody’s that MHP has strong operating and financial
metrics. Also, we expect the company’s EBITDA improvement in 2018. We do not expect the rating upgrade will have any
impact on MHP’s Eurobonds, which already trade with the biggest negative spread
to sovereign curve of all Ukrainian issuers.